State Bank of India is the biggest bank in India. As per the new circular, SBI is supposed to take over all other regional banks in India which will make its position even stronger than before. SBI is a renowned name to reckon with and a brand that is built on trust and goodwill.
As an investor, when you are investing with a company, you look for its credibility so that it does not go bust. SBI is a force to reckon with. A bank that will always be robust and will always give good returns no matter what you do. There are a plethora of investment options offered by the Numero Uno bank in India. Now, do not be mistaken by the fact that SBI is an old bank that does not have sound modern facilities. With time, SBI has evolved and offers the latest amenities like e-banking and offers new-age investment options. So, if you are planning to save money then here are a few options from SBI that you can look at.
This is the safest and lowest risk mode of investment. In this mode, you can park the surplus fund in your hand with SBI by entering a contract with them. As per the contract, you will keep a certain amount of money for a fixed tenure with SBI and against which, SBI will pay you a fixed amount of interest. It is the most lucrative form of investment. The interest earned differs from time to time depending on the economic and fiscal policies of the country. One can easily break the contract any time they want for which they might have to pay some penalty. In SBI, one can start fixed deposits with an amount as low as INR 1000. One can also enjoy an overdraft facility against the fixed deposit if the need arises.
This is another avenue to invest in State Bank of India. SBI term deposits are known to offer one of the best rates of interest in the industry. Through term deposit, you can save your surplus money and help it grow steadily. These term deposits can be of ranging from 7 days to 10 years depending on what is the time frame you want to do it. You can start a term deposit with as much as INR 1000 and you will get quarterly interest on the same. You can also take overdrafts or loans against the term deposit if required.
SBI is also known to have various kinds of recurring deposits. If you are one of those, who cannot do a fixed deposit or a term deposit as you do not have surplus fund with you at one go, then recurring deposits are the best bet you have. In the case of a recurring deposit, you get the liberty to save a small amount every month. This is a wonderful way to save money in the long run. After years, of recurring, you can use the accumulated money to fund your child’s education, marriage or even buying a car you always dreamed of. Since these are monthly investments you get the liberty of investing in significant amounts. This is also flexible and gives you the chance to invest for as long as you want to. SBI is also, known to offer an overdraft facility on the loan. Also, as compared to term deposits or fixed deposits, there is no TDS deducted on the interest income in case of recurring deposits.
This is the savings account that SBI offers to inculcate the habit of savings amongst its customers. SBI is known to mainly offer two kinds of savings account
Savings Account: This is a simple account where you can park your savings. It has a debit card also; money multipliers and one can be in name of single or joint account holder’s name. You get interested quarterly and there are no minimum amount criteria for the same.
Savings Plus: This is the second kind of account offered by SBI. In this account, the account holder opens the account for the tenure of a minimum of one to a maximum of five years. The minimum amount is INR 5000 and once the threshold limit is exceeded, the funds sweep into the placement of a term deposit.
SBI Life Insurance
SBI has various life insurance policies on offer. These policies are mainly done to keep one’s dependents secured whether one stays or not.
Here are a few SBI life Insurance policies on offer
Flexi Smart: The premium that one pays goes into the policy that earns a minimum interest of 2.5 % throughout the tenure.
Smart Money Back: This comes with various periodic benefits. Based on the term of the policy the term benefit might vary from 110 % to 125 % of the sum assured.
Saral Life: the maturity benefit in this scheme is depended on the assured sum and the regular bonus. As an insured person, you can also take loans against them but this policy offers no riders.
Sanjeevan Supreme: This is a fixed tenure term plan that gives premium payment in regular intervals along with final maturity payout.
Shubh Nivesh: This is another whole term plan offered by SBI. The insured get options like assured plus bonuses and riders on this one.
Unit Linked Insurance Plan is a long-term investment option that is linked to the market and gives you higher returns than others.
Mutual funds are for those who do not want to invest in equity shares directly. It is also an ideal investment plan option for all those, who do not want to invest only in one kind of share and prefer to equally distribute their stake across various shares. It gives a higher rate of interest as compared to a fixed or term deposit but the risk involved in the same is far less. One can invest in them in both lump sum modes or through a systematic investment plan.
Depending on your financial goals, you can choose from the above various kinds of investment options offered by SBI.